15 Ways Bitcoin Will Change the Future of Money

For those who are tired of the central bank's monopoly on legal tender, Bitcoin definitely has more advantages than disadvantages. Bitcoin not only has currency functions, but also can be used as an application. Anyone can use this software to create currency.

Here are 15 reasons why Bitcoin’s technological innovation could change the future of money.

The world's first P2P currency system

Do you think you can only have money if you rely on the government? Are you really not living in the 20th century if you think so? Bitcoin is the people's money, created for the people, and by the people. Money has existed since humans exchanged eggs for milk. Now, the currency of exchange has become digital. Animals? Private printing presses? Interest rates? None.

Blockchain - Bitcoin's public ledger transaction platform

Bitcoin's blockchain technology has gained global popularity because of its revolutionary capabilities. It is the heart of the Bitcoin protocol and is used to track all Bitcoin transactions. This ledger can replace all the paper files, lawyers, and other things that burden the current monetary system. The 21st century and the Internet have created this "record storage" function. Central banks only wish their technology could be like this.

Ultra-flexible transmission

Bitcoin can be easily transferred online. It can also be sent in many other ways. For example, it can be sent via SMS using a special mobile phone, or even just a smartphone. You can receive Bitcoin using a paper wallet. You can also send it by typing "Burst" in Morse code. Soon, nodes will be sent via satellites in space. So what do you need to prepare to transfer Bitcoin? Just two nodes on the blockchain.

Welcome to the world of tokens

Without Bitcoin, there would be no second-tier tokens. Bitcoin has triggered the creation of other amazing digital currency technologies. The amazing qualities of these second-tier tokens may be copied by Bitcoin in the future. In baseball, second-tier tokens are like minor league teams, from which the digital currency major leagues occasionally select a few young talents to join.

Sometimes, someone will ask for a digital currency other than Bitcoin. Maybe he wants to make transactions safer, more private, faster, or just happens to have a lot of this digital currency. Maybe one day, there will be a second token that meets all your needs.

Programmable Money

Those who have known Bitcoin for a while know that the "smart contract" created by Nick Szabo more than 20 years ago will definitely become an important part of human life in the future. What is a "smart contract"? It means that once the conditions are met, various contracts can automatically take effect. The conditions include: payment, signature or deadline. In other words, Bitcoin makes money programmatic, which is another reason for us to quit our lawyer jobs.

You control your own Bitcoin

Governments prefer fiat currencies because they can use them as they wish. The public has to pay for their various malfeasances. Inflation is a tactic that governments come up with to take advantage of the flaws of the fiat currency system.

Bitcoin does not have the flaws of Keynesian economics. Governments cannot control Bitcoins and steal their citizens' money, nor can they manipulate their quantity or change the exchange rate. Governments have a bad habit of creating more and more money until the fiat currency is worthless. If you count on your fingers, that day is coming soon. However, Bitcoin users know the total number of Bitcoins (21 million), so they don't worry about the possible problems caused by inflation.

Bitcoin is much faster than the US dollar

Bitcoin transfers money faster than fiat currencies. Have you ever tried to transfer $100,000 USD or Euros to another country? As a former banker, I have transferred that amount of money countless times. This experience has shown me that the existing monetary system is not fast and effective.

When customers arrive at the bank counter, they need to answer more than 20 questions, then pay fees, wait for approval, and finally transfer funds. Similarly, the recipient of the funds has to go through the same steps. This process often takes a whole day. But now, a million-dollar Bitcoin transaction can be completed in just a few seconds, and the intermediate fees are almost zero. It will take about 10 years or more for the banks we use now to achieve the efficiency of Bitcoin.

Crowdfunding outside the crowd

Suppose you are a farmer in Argentina and you need $1,000 to buy materials, food, and animals to expand your farm experience. Then, just put your Bitcoin QR code on your own or someone else's website, and people around the world can raise funds for your project. No checks, ID cards, or signatures are needed.

Welcome to the new world of micropayments

Do you have a blog? Do you want to get paid when people watch your videos, articles, or interviews? Or do you want to reward your favorite writers or editors with Bitcoin? Generally speaking, if the payment amount is less than $5, the transaction efficiency is extremely low.

Since Bitcoin is a p2p transaction with no middlemen, its cost is about less than 1 cent and can reach all regions of the world. The previous "business cost" has become a profit.

Easy movement of wealth

Let's say you want to carry 10 gold bars or $1 million in cash from one country to another. Assuming you don't get robbed, you'll likely get harassed by the police or government officials at the border or airport. That's the way things are now.

However, with Bitcoin, you can create a "brain wallet" (a string of characters you can remember), and with this wallet, you can walk around the world with confidence.

Business accounts are obsolete

I have an idea. Stop using a business account! Create two wallets with Bitcoin: one for personal use and one for business use. No fees, monthly invoices/statements, and no "customer service". Doesn't that sound better than a 2.9% fee plus a fee on every transaction?

Open private banks in the distant third world

What if you are unlucky enough to live not in a modern city with a pizza shop on the corner, but in an African country with no 4G, no cable TV? There are no cars in the whole town. And you live on a muddy road 100,000 miles from the city center, with a mountain between you and the bank. How can you do local business, let alone global business?

With Bitcoin, you can transact business around the world with just a phone that can send basic text messages. You are the bank. Buy, sell or trade around the world without any fees. No car, debit card or ID card required.

Bitcoin is of course real money

I’m sure someone has said this before, “What’s that? Shining gold? That’s not real money. We only accept feathers.” Currency has smoothly evolved from shells, feathers, gold to the current fiat currency system. But now, with countries like Greece facing currency collapse due to debt crises, the world must prepare to accept digital currencies, led by Bitcoin.

Bitcoin may be more real than the money in your pocket. Bitcoin is not counterfeit or forged, but the money in your pocket right now may be counterfeit. All legal tender has been or can be copied. In addition, the cost of combating counterfeit money is extremely expensive and the harm to the market is also obvious. Bitcoin technology can prevent all this.

If you still think Bitcoin has no "intrinsic" value, click here to see another good article that explains where Bitcoin gets its true value.

People who mine or hold Bitcoin have a specific time stamp.

All transaction records will leave specific symbol records on the blockchain, which is impossible to achieve with the old paper system.

Instantly make the finances of all companies or countries rational and transparent

Governments or entire countries can use blockchain technology to make all or some of their services transparent. Some countries, such as Honduras, have tried using blockchain for land registries.

The government wants to completely eliminate corruption in a particular department? As long as the blockchain is used as the accounting platform for the department's general ledger, the budget can be calculated in units of Bitcoin. Accounting does not require lawyers, and it is cheap and efficient.

In addition, as time goes by, the appreciation potential of Bitcoin increases, and the department can distribute dividends or year-end bonuses through reinvestment of earnings. (Of course, it is Bitcoin!)

The future of money

Bitcoin is a very special and disruptive invention. BNP Paribas likens it to the steam or internal combustion engine. It has no physical central location, top management, or PR to look out for its best interests or tell the world how great it is every day. Like the Internet, Bitcoin simply exists, yet performs the functions of a debit card and PayPal.

We can’t overthrow it or hope that central banks or governments will take it over. As the mainstream media is now reporting, Bitcoin is far from perfect. It is not easy to understand, obtain or store. However, the above 15 reasons are enough for us to invest time, energy and resources to cultivate Bitcoin and hope that it will become “the future of money”.